Market Overview: Enzyme/Tether USDt (MLNUSDT)

• Price rose from $7.76 to $7.95 on strong volume, with key support at $7.81 and resistance at $7.91.
• RSI surged into overbought territory, signaling potential pullback, though momentum remains positive.
• Volume surged during the final 4 hours, confirming bullish conviction, while Bollinger Bands widened, indicating rising volatility.
• A bullish engulfing pattern formed at $7.86–$7.91, suggesting further upside potential.

The Enzyme/Tether USDt (MLNUSDT) pair opened at $7.76 on 2025-09-05 12:00 ET and closed at $7.87 at 2025-09-06 12:00 ET, hitting a high of $7.95 and a low of $7.76. Total 24-hour volume reached 15,203.89 and notional turnover was approximately $118,834.10.

Structure & Formations

Price formed a clear bullish engulfing pattern at $7.86–$7.91, signaling strength in the short term. A key support level at $7.81 and resistance at $7.91 were both tested and respected. A doji appeared at $7.87–$7.87, suggesting indecision after a strong upward move. A strong bullish breakout occurred between $7.86 and $7.95, with no bearish reversal patterns emerging after that.

Moving Averages

On the 15-minute chart, the 20SMA and 50SMA showed a bullish cross, with price trading above both lines. This confirmed a short-term bullish bias. Over the daily chart, while the 50DMA and 200DMA had not crossed, price remained above both, indicating a continuation of the longer-term bullish trend.

MACD & RSI

The RSI surged past 70, indicating overbought conditions, particularly after the $7.91–$7.95 rally. The MACD line crossed above the signal line, confirming a bullish momentum phase. However, the RSI divergence at $7.91–$7.95 suggested caution for further upside, with potential for a pullback expected.

Bollinger Bands

Volatility increased significantly during the breakout phase, with Bollinger Bands widening from approximately $7.80 to $7.95. Price spent the final 4 hours near the upper band, indicating high volatility and aggressive buying. This expansion suggests potential consolidation ahead, as overbought conditions may trigger profit-taking.

Volume & Turnover

Volume surged during the last 4 hours of the 24-hour period, peaking at over 6,397.88 units, confirming strong buying interest. Notional turnover also spiked during the $7.86–$7.95 move, aligning with price action. No notable divergences were observed between volume and price, indicating confirmation of the bullish move.

Fibonacci Retracements

The most significant retracement levels over the 24-hour period were at 38.2% (~$7.86) and 61.8% (~$7.90). These levels acted as key support and resistance during the breakout and consolidation phases. The 50% retracement level (~$7.87) was tested and held, indicating potential for a continuation above this level.

Backtest Hypothesis

A potential backtest strategy could involve entering long on a bullish engulfing pattern formation when RSI exceeds 60 and MACD confirms with a positive crossover. Stop-loss could be placed below the 61.8% Fibonacci level (~$7.89), with a target at the 78.6% extension (~$7.98) or the upper Bollinger Band. This approach would test the effectiveness of pattern-based entries with RSI and MACD as confirmation tools in a volatile market context.